Stock Markets: Everyone’s waiting for Nvidia

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Stock Markets: Everyone’s waiting for Nvidia

Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading in New York on August 23, 2024.

Angela Weiss | AFP | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Another Dow recordStocks

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ahead of Nvidia’s earnings report. The

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eked out a 0.02% increase, marking its second consecutive record close. The

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and

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both rose 0.16%.

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shares climbed 1.5% as investors look to the chip giant’s earnings release expected Wednesday. Meanwhile, the yield on the 10-year

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rose slightly, while

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fell 2.2% on the hope

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would be temporary.

‘Most important stock’

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has been volatile of late. The AI chipmaker’s market cap has increased ninefold since 2022 and briefly became the world’s most valuable public company. But soon after the stock dropped nearly 30% over seven weeks, losing $800 billion in value. The stock has since rebounded to within 7% of its all-time high. With quarterly results due Wednesday, Wall Street is focused on Nvidia’s performance, as it could impact the broader market. “It’s the

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in the world right now,” EMJ Capital’s Eric Jackson told CNBC. “If they lay an egg, it would be a major problem for the whole market. I think they’re going to surprise to the upside.” CNBC’s Kif Leswing takes a look at

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.

Asia dips amid some bright spotsAsia-Pacific markets mostly fell Wednesday. Australia’s S&P/ASX 200 dropped around 0.2% after the country reported a 3.5% year-on-year increase in its July CPI, above the 3.4% expected. Not all’s bad in the region, though. Shares of JD.com climbed around 1.4% after the ******** online retailer announced a $5 billion buyback, while Xpeng shares popped close to 2.3% after the ******** automaker announced a new mass-market car.

Cryptocurrencies stumbleThe price of bitcoin fell around 4.2%, as of publication time, to $59,412.14, according to Coin Metrics. Ether tumbled around the same percentage to end up at $2,478.88. “Crypto markets moved down sharply, triggering a leverage driven liquidation,” said Steven Lubka, head of private clients and family offices at Swan Bitcoin. “The move appears to have been kicked off by a material drop by Ethereum, which has been struggling all year versus bitcoin.”

Nordstrom soars 

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shares surged more than 7% in extended trading after the retailer

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. The retailer reported adjusted earnings of 96 cents per share, above analysts’ estimates, on revenue of $3.89 billion, up 3.4% from a year ago. Despite the earnings beat, Nordstrom provided cautious full-year guidance, expecting adjusted EPS between $1.75 and $2.05 and sales ranging from a 1% decline to 1% growth.

[PRO] Renewed confidence in NvidiaEveryone is waiting with bated breath for Nvidia’s earnings, which are coming out Wednesday after U.S. markets close. Some ***** the company can’t sustain its momentum. But Truist Securities, a capital market company, just raised its price target of Nvidia.

The bottom line

While the

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is within touching distance of its record high, the

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******** more than 14% below its all-time high, with many of its components in bear market territory. As CNBC’s Fred Imbert writes, that has many

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Nvidia has been a key driver of the market’s rally this year, with its stock up 160%, despite a recent dip. As the second most valuable U.S. stock, investors are eagerly awaiting its earnings report to see if it can sustain the AI momentum. However, with the

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— above the S&P 500 tech average — there are concerns about whether Nvidia can meet high expectations, especially regarding future guidance.

“Go back to the middle part of the year, the S&P was up 15%,

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,” Scott Chronert, Citi’s U.S. equity strategist, told CNBC. “There’s no question from a basic index weighting perspective the importance of Nvidia.” However, the market needs to continue to see evidence of AI productivity-enhancing tailwinds playing out, Chronert said, highlighting that future guidance will be crucial.

Joseph Moore, a semiconductor industry analyst at Morgan Stanley, acknowledges that while competitors like

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,

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and

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present viable alternatives, Nvidia’s

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. “We expect them to at least hold share in 2025… These numbers have gotten so big so quickly, I think that’s the ******* risk,” Moore told CNBC. He sees Nvidia retaining its market share of 90% of AI processors.

Going into the earnings, Truist Securities analyst William Stein raised his price target for Nvidia, CNBC’s Pia Singh

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. And CNBC’s Kif Leswing takes a look at

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.

The broader tech landscape is also under scrutiny this week, with earnings from

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and

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adding to the mix. August saw a tech sector sell-off, but Federal Reserve Chair Jerome Powell’s dovish comments helped reverse some of that downturn. 

However, Nomura analyst Naka Matsuzawa warns that stronger-than-expected

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“This week U.S. tech companies’ earnings reports will be the main focus, and if the risk of a collapse in tech stocks subsides, this pricing-in of rate cuts could be partially reversed,” he wrote in a Monday note.

— CNBC’s Lisa Kailai Han, Brian Evans, Fred Imbert, Arjun Kharpal, Kif Leswing, Annika Kim Constantino, Gabrielle Fonrouge, Pia Singh, Spencer Kimball and Yeo Boon Ping contributed to this report. 

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#Stock #Markets #Everyones #waiting #Nvidia

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